T. Rowe Price Ultra Short-Term Bond ETF Price & Performance (TBUX)

Ultra-short-term bond ETFs, such as SGOV and BIL, have gained prominence in 2025 due to rising recession fears and liquidity advantages over money market funds. SGOV has seen $7.8 billion in inflows this year, surpassing BIL's $4.8 billion, with its lower expense ratio contributing to a performance edge.1

T. Rowe Price's strategist highlights 2025's fixed income uncertainty, recommending floating rate and ultra-short-term bonds over long-duration treasuries. Active ETFs like TFLR and TBUX align with this approach, offering adaptability in a "higher for longer" interest rate environment, countering traditional duration-focused strategies.2

The Vanguard Developed Markets Index Fund led U.S. stock ETFs in January with a 4.46% gain, while the Vanguard Growth Index Fund trailed at 1.95%. Among bond ETFs, the Vanguard Short-Term Inflation-Protected Securities Index Fund outperformed, gaining 0.91%, showcasing varied results across asset classes.3